The Economy's Self-Correcting Mechanism to Eliminate a Recessionary Gap Relies

question 137

Multiple Choice

The economy's self-correcting mechanism to eliminate a recessionary gap relies on

• A)falling interest rates that shift the aggregate demand curve outward.
• B)falling wage rates that shift the aggregate supply curve outward.
• C)rising wage rates that shift the aggregate supply curve inward.
• D)increases in the price level that shift the aggregate supply curve inward.

---

Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into four principal parts: product, price, place, and promotion.

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the organization and implementation of a scaleable and adaptable supply chain.

Tying Arrangement

A sales technique where a seller requires a buyer to purchase additional, often unrelated, items as a condition of buying a desired product.

Distributor

An intermediary in the distribution channel that buys products from manufacturers and then sells them to retailers or directly to the consumers.